December 14th, 2021 – Fragasso Financial Advisors have released a divorce survivor’s guide in an article uploaded on its online blog. The article, which was written by the firm’s resident Certified Divorce Financial Analyst(R) – Mallory Labik, examines the benefits and drawbacks of keeping the family home after a divorce. This article was written to help people in the process of dissolving a marriage to make logical, unemotional decisions that may impact their finances.
According to the firm’s divorce survivor’s guide, divorce is probably one of the most difficult and emotional experiences people will ever witness in their lives. The act of dissolving a marriage can have lasting consequences on the lives of both spouses and other family members, especially children. While the emotional damage can be managed with therapy, the financial consequences of a divorce, especially for a couple approaching retirement, can be more profound and complex to navigate.
Keeping the family home after a divorce might seem like a good idea, especially when there are young children in the household, as the familiar environment can help provide a sense of stability. However, as Mallory Labik points out in the article, a lot of factors need to be thoroughly considered and well thought out before such a decision should be made.
Mallory points out that while choosing to keep the home might seem like a noble idea, that spouse needs to understand they would be solely responsible for paying the mortgage, insurance and property taxes for the first time. Handling these costs without help from the usual income streams they’ve been accustomed to can prove to be quite the challenge. Without proper planning and guidance from a financial advisor and legal cousel, many people soon find themselves dipping into their savings or liquidating assets to pay for regular and often unexpected repair costs.
Additionally, choosing to keep the home often results in reduced financial assistance from the other spouse, and without a strong financial plan, everything could spiral out of control and can lead the party to losing the property altogether.
Every divorce presents its own unique set of challenges, tough choices and complicated decisions to be made. Thus, people must consider how every single choice will affect them both in the short and long term. With financial advisors such as Fragasso Financial Advisors, an unbiased professional will help people consider all the different factors and also prepare cash flow projections that will allow them to make settlement decisions based on facts, not emotions.
Investment Advice offered by investment advisor representatives through Fragasso Financial Advisors, a registered investment advisor.
About Fragasso Financial Advisors
Fragasso Financial Advisors, Inc. is an independent, employee-owned, primarily fee-based investment management and financial planning firm. Founded in 1972, the firm today has $1.8 billion under management and non-advisory assets combined. Its unbiased approach allows it to act as a neutral party seeking investments that are suited to its clients and adhering to a fiduciary standard without the distraction of a provider’s preferred list. For more information on the series, visit https://www.fragassoadvisors.com.
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Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Independent Echo journalist was involved in the writing and production of this article.